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5 Things You Should Know Before the Stock Market Opens Thursday, May 16
- Walmart beat expectations for quarterly revenue and earnings.
- Netflix’s ad-supported tier nearly doubled the number of global monthly active users.
- Berkshire Hathaway revealed its secret stock purchase.
Here is the most important news investors need to start their trading day:
We are in record territory again. All three major indexes reached new highs on Wednesday and added to their strong performances in 2024. The broad market S&P 500 The index gained 1.17%, surpassing 5,300 for the first time, to end at 5,308.15. The technology heavy Nasdaq Compositein turn, rose 1.40% while the Dow Jones Industrial Average gained 349.89 points, or 0.88%. Stocks got a boost from a lighter-than-expected consumer price index report, which raised hopes for lower rates from the Fed. Follow live market updates.
A Walmart Supercenter cart sits outside the store on February 20, 2024, in Hallandale Beach, Florida.
Joe Raedle | Getty Images
Wal-Mart On thursday surpassed quarterly revenue and earnings expectations and said it expects to top or slightly exceed its previous full-year guidance. The big retailer attributed its success to making significant gains in e-commerce, generating profits from newer businesses like advertising, and gaining more high-income shoppers. Walmart is the nation’s largest retailer and private employer, which means it is often seen as a bellwether for the U.S. economy. But it generally performs better than other retailers during an inflationary period because it sells basics like groceries and has a reputation for being value-oriented.
Warren Buffett speaks during the Berkshire Hathaway Annual Meeting of Shareholders in Omaha, Nebraska, May 4, 2024.
CNBC
Berkshire Hathaway finally revealed a share purchase that it has been keeping secret for several quarters. The conglomerate, which had requested confidential treatment, bought 26 million shares in the Zurich-based insurer little fat for a stake worth US$6.7 billion. Chubb shares rose nearly 10% in premarket trading Thursday after the stake was revealed. It is now Berkshire’s ninth-largest holding as of the end of March. Berkshire already has a large presence in the insurance sector.
The Netflix logo is displayed above its corporate offices on January 24, 2024 in Los Angeles, California.
Mario Tama | Getty Images
Netflix is taking its first real step live sports. The streaming platform will show two NFL games on Christmas Day this year and will have at least one matchup in 2025 and 2026. Netflix has not disclosed how much it paid for the rights to broadcast the games, but they could be a big draw for advertisers as seeks to increase profits by increasing subscription prices and encouraging users to become members through the advertising tier. The company also said on Wednesday that it is cheaper, ad-supported tier it now has 40 million global monthly active users, nearly double the 23 million reported in January.
The Uber logo is seen on a temporary showroom on Promenade Road during the World Economic Forum 2023 in the alpine resort of Davos, Switzerland, on January 20, 2023.
Arnd Wiegmann | Reuters
Uber announced on Wednesday several new features which aim to help customers save money on tours and food. Product updates, revealed at an annual showcase in New York City, include the launch of Uber Shuttle, where riders can use Uber to reserve seats on a local bus for trips to the airport, work and live events like gaming. sports and shows. . Meanwhile, Uber Caregiver will allow customers to book rides for people they care for and order medical supplies and groceries on their behalf. Other new initiatives include discounted student subscriptions, Costco perks, the ability to book UberX Share rides and “lists” on Uber Eats.
— CNBC’s Lisa Kailai Han, Melissa Repko, Yun Li, Ece Yildirim, Jacob Pramuk, Sarah Whitten, Alex Sherman, Lillian Rizzo and Ashley Capoot contributed to this report.
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